Suppose that $2 = £1,$1.60 = €1,and the cross-exchange rate is €1.25 = £1.00.If you own a call option on £10,000 with a strike price of $1.50,you would exercise this option at maturity if
A) the $/£ exchange rate is at least $1.60/£.
B) the $/€ exchange rate is at least $1.60/€.
C) the €/£ exchange rate is at least €1.25/£.
D) none of the options
Correct Answer:
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